$11.5 Billion Federal Stimulus Package Eliminates Need For State Income Tax Hike
The purported $9 billion deficit in state revenues will be wiped out without raising the state income tax, according to Jim Tobin, President of National Taxpayers United of Illinois (NTUI). Tobin cited the massive funds Illinois will receive from the federal government’s “stimulus” package.
“The purported gap in state funds of $9 billion is projected through June 30, 2011,” said Tobin. “However, State Senator Chris Lauzen (R-25, Aurora) has confirmed to me that the state will receive $9.4 billion for its general operating expenses over the next 20 months from the federal government’s ‘stimulus’ package. Furthermore, the federal government also will be giving an additional $2.1 billion to the state for capital expenditures.”
“The stimulus package will more than offset the so-called ‘gap’ of $9 billion. In fact, if state expenditures are reduced, the state income tax can actually be cut, which will attract businesses and create jobs.”
“A good place to start is to eliminate totally useless state functions, such as the State Police (other than the crime lab) and the Dept. of Commerce and Community Affairs. Taxpayers will see no cut in state services, and the savings will be enormous.”